Sri Lanka Telecom to connect a million fibre optic customers within two years
Fitch Ratings has reportedly stated that Sri Lanka Telecom (SLT), which is Sri Lanka’s sole wireline operator, is expecting to connect a million fibre optic customers in the next two years form current 70,000 despite low broadband tariffs.
Fitch has downgraded the outlook on SLT’s ‘AA+(lka)’ rating after the outlook on Sri Lanka’s sovereign rating was lowered.
According to Fitch, SLT is expected to invest amounts equal to 28 to 30 percent of revenues on infrastructure on its 4G networks.
The statement released by Fitch says, “Fitch Ratings has revised the Outlook on Sri Lanka Telecom PLC’s (SLT) National Long-Term Rating to Negative from Stable and affirmed the rating at ‘AA+(lka)’. We have also affirmed the National Ratings on SLT’s outstanding senior unsecured debentures at ‘AA+(lka)’.
“The rating action follows Fitch’s revision of the Outlook on Sri Lanka’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to Negative from Stable (see, “Fitch Revises Outlook on Sri Lanka to Negative; Affirms at ‘B’”, (fitchratings.com/site/pr/10105494) dated 18 December 2019.)”
OSL take:
The technological advancement of Sri Lanka Telecom is indicative of the expanding business/investment opportunities in Sri Lanka’s telecommunications sector. Foreign businesses/investors could explore business opportunities in Sri Lanka’s telecommunications sector.
| Article Code : | VBS/AT/02012020/Z_4 |